The following report is by Paul Craig Roberts of the Institute for Political Economy:
The US financial sector has long looted other countries. A number of participants have described the process. First a country is enticed with bribes to the leaders to take out loans that cannot be serviced or repaid. Then in comes the IMF. Austerity is imposed on the population. Public services and employment are cut to free resources for debt service, and public assets are sold to repay the loan. Living standards fall, and US corporations take over the country’s economy.
As foreign governments, having experienced or witnessed the economic carnage and fearing accountability, are less willing to be bribed into indebting their countries, American finance is now applying this technique to Americans. Contrary to the narrative in the financial press, the Federal Reserve is not raising interest rates in order to fight inflation. It is ludicrous to think that a three-quarters of one percent rise in a very low interest rate is going to have any impact on a 9.1% rate of consumer inflation or that speculation that the Federal Reserve has in mind another three-quarters of one percent possibly followed by one half of one percent comprise an anti-inflation policy. If all these increases occur, it still leaves the interest rate below the inflation rate.
Moreover, as I have previously explained, the inflation is not monetary. The higher prices are the result of supply disruptions caused by Washington’s Covid lockdowns and Russian sanctions. Production was stopped and supply chains are broken.
The Federal Reserve’s rise in interest rates is just a continuation of its policy of concentrating income and wealth in the hands of the One Percent. Quantitative Easing was the cloak for the Federal Reserve to print $8.2 trillion in new money which was directed or found its way into the prices of stocks and bonds, thus enriching the small number who own most of these financial instruments. Having maxed out this avenue of wealth concentration, the Federal Reserve is now raising interest rates in order to drive up mortgage costs to aspiring home owners. The Federal Reserve is driving individuals out of the housing market in order to free up properties for “private equity” firms to purchase homes for their rental values. That private equity firms see rental income from the existing stock of houses as the best investment opportunity tells us that the US economy has played out. When investment goes into existing assets, not into producing new assets, the economy ceases to grow.
Mortgage Rates Continue To Climb. Housing Market On The Verge Of Collapse
The Obama regimes policy of bailing out the financial fraudsters responsible for the 2008 crash while foreclosing on their victims, reduced American homeownership from 70% to 63 percent. The Urban Institute predicts further declines. Today homeowners’ equity has declined from 85% after World War II to one-third, leaving two-thirds of homeowner equity in the hands of creditors. This makes it completely clear that a financialized economy indebts the people for the sake of rentier income to the One Percent. Indeed, the financialized economy created by the Federal Reserve has reimposed a class system akin to the landed British aristocracy that was overthrown. Indeed, we have an economically far worst class system. The landed British aristocrats produced food that fed the nation. The American class system produces interest and fees for the financial system.
As Michael Hudson has shown us, a no-growth economy is the end result of a financialized economy. A financialized economy is one in which consumer income is diverted by debt expansion away from the purchase of new goods and services into debt service and fees–interest on mortgages, car loans, credit card debt, student loan debt. With such a large share of household income spent on debt service, little is left for driving the economy forward.
If American economists were capable of escaping from their neoliberal junk economics, they would realize that “the world’s largest economy” they attribute to the United States is total fiction. The fact is that the United States does not have an economy. Corporations driven by Wall Street located American manufacturing in Asia so that the One Percent could benefit from higher profits from lower labor costs, while the deserted city and states had to sell their income streams, such as Chicago’s parking meter revenues for 75 years, to foreigners for one lump sum payment to solve one year’s budget crisis.
The offshoring of American production, carried out under the cloak of “globalism,” destroyed the American economy and the tax bases of cities and states. While the real economy declines, the Democrat Party, seeking permanent power, has imposed a policy of open borders for immigrant-invaders. How are these millions of peoples to support themselves in an economy whose manufacturing has been moved abroad? How can a population, deserted by American corporations, that is experiencing debt deflation absorb the costs of support and social infrastructure for tens of millions of third world immigrant-invaders?
You will never hear it from the whores in the financial press, but the United States is on the precipice of economic and social collapse. And what are the fools in Washington doing? The idiots are ginning up wars with Russia, China, and Iran.
AUTHOR COMMENTARY
The king by judgment establisheth the land: but he that receiveth gifts overthroweth it.
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 29:4, 27:7
Roberts’ article is succinct yet a pertinent report that encapsulates all the very same things The WinePress has been pointing at and noting.
Simply put, as I have emphasized many times already, the U.S. economy is completely dead and gone. All we have done is put Hello-Kitty Band-Aids on gunshot wounds since 2008. The Titanic started taking on water while most of the masses attempted to shrug it off; especially when Trump came to power and tacked on trillions more of debt and was instrumental in propping up the Federal Reserve ever further. Now the Titanic is rapidly sinking at lightning speeds, though most people on the upper decks still think that if they ignore them, than the problems will go away. We are very close to the Titanic going very vertical and snapping in half, and dragging down hundreds of millions of people with it.
Are You Awake? Are You Ready For What’s Coming? Do You Loathe The Honeycomb??
Therefore, pay attention, be vigilant, be frugal, be cautious, and prepare for a thermal-nuclear collapse to come. I do not believe it will be ‘tomorrow,’ but soon.
What An Implosion In The Debt Market Would Look Like – And It Isn’t Pretty
The Quickest Way To Know The Economy Is Broken Beyond Repair
The Federal Reserve Is Guaranteeing Inflation Will Persist: Ignore The Media’s Rhetoric
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Problem, Reaction, Solution (how to take over the world)
This is a system that has been used by governments threw out all history. How does it work? Simple, you create a problem, the people react and get all upset, then you provide the solution to said problem. For example, the US has had an armed population since it was founded. We did not have school shootings, people shooting up malls etc… People get upset, the government needs to “do something”! So they disarm the population, for their own safety. Bonus: This how they did it in Australia. Had the government just said everyone “give us your guns”, they would have said NO, and been armed.
So that is the basic concept, pretty easy to understand for the most part. Now let’s say you wanted a global government, ultimate central control. How do we get the people to demand it? You place in all the countries around the world, drug using, corrupt pedophiles, satanist, etc… They make policies that ruin the food supply, drive up the cost of fuel, push immorality to the ext ream, etc… When riots start on a mass scale, people can’t afford to eat, race wars are fueled, and so on; you wait until they are on the brink. Then offer up a solution. They jump on it!
This is why this is going on, all over the world.
Exactly!
Great article. And very true.
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“Things are getting better, the economy has never looked so wonderful, we’re a rich prosperous nation, we’re the beacon of hope for the world.”
Keep telling yourself that, America.